If you're a fan of small cap shares, then you're in luck! At present there are a number on the local share market that have been tipped to grow strongly in the future.
Two in the tech sector that could be worth getting acquainted with are listed below. Here's what you need to know about them:
Bigtincan Holdings Ltd (ASX: BTH)
The first small cap tech share to look at is Bigtincan. It is a fast-growing provider of enterprise mobility software. This software allows sales and service organisations to increase their sales win rates, reduce expenditures, and improve customer satisfaction through improved mobile worker productivity.
Bigtincan has been growing at a strong rate over the last few years thanks to increasing demand for its quality platform. Pleasingly, this positive form has continued in FY 2022. Last month the company revealed a huge jump in cash receipts during the first quarter. Management also confirmed that it remains on track to meet or exceed its annualised recurring revenue (ARR) guidance of $119 million. This includes the benefits of the recent Brainshark acquisition and implies annual growth of at least 124%.
In response, Morgan Stanley retained its overweight rating and $2.10 price target on Bigtincan's shares.
Nitro Software Ltd (ASX: NTO)
Another small cap tech share that is rated highly is Nitro. It is a fast-growing global document productivity software company aiming to accelerate digital transformation in a world that demands the ability to work from anywhere, anytime, on any device.
Nitro's cloud-based software allows organisations to drive better business outcomes through 100% digital document processes and fast, efficient workflows. This includes through the increasingly popular Nitro Productivity Platform, which offers comprehensive business solutions, including powerful PDF productivity, unlimited eSigning, and industry-leading analytics.
At the last count, the company had over 2.8 million licensed users and 12,000+ business customers in 155 countries. This includes over 68% of the Fortune 500 and three of the Fortune 10.
Last month the company released its third quarter update and revealed a 50% increase in its ARR. This puts it on course to achieve its ARR guidance of US$39 million to US$42 million in FY 2021. Pleasingly, this is still only a fraction of its estimated total addressable market of $28 billion.
In response to its update, Bell Potter retained its buy rating and lifted its price target to $4.50.
